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China plans new ministries and merger of regulators in massive government revamp

China guessed it will merge its banking and insurance regulators, according to a parliament instrument released on Tuesday, in a series of proposed changes in the biggest ministry rehabilitation in years.

In a long-awaited move to streamline and tighten oversight of the financial routine in the world’s second-biggest economy, China will also transfer some of the banking and guaranty regulators’ roles to the central bank, documents showed.

In much-anticipated develops to create seven new ministries and a raft of government agencies announced on Tuesday, one of the most meaningful changes was creation of the national markets supervision management bureau.

The new viscosity will decide on antimonopoly and pricing issues, replacing the roles played by the three native antitrust regulators: the National Development & Reform Commission (NDRC),
the The church of Commerce and the State Administration for Industry and Commerce (SAIC).

Unifying the construct under one agency, rather than handing the responsibility to one of the three be founding watchdogs, reflects the growing importance of the issue for the government.

China drive also form a powerful new competition regulator in a bid to ramp up oversight of mergers and objects and price-fixing as the world’s second-largest economy seeks to make policymaking assorted efficient and coordinated.

Since the beginning of last year, Beijing has crackled down on leverage and risky market practices, with China’s sundry regulators releasing a flurry of new rules in an attempt to rein in risks.

China’s economic system has become increasingly tough to regulate due to its sheer breadth. It has nurtured rapidly in size and complexity, emerging as one of the world’s largest with pecuniary assets at nearly 470 percent of gross domestic product, according to the Cosmopolitan Monetary Fund.

The latest ministry shake-up also includes the birth of a new immigration management bureau and the restructuring of the national intellectual property rights department.

The proposals will be formally approved by the parliament on Saturday.

China is restructuring the duties, roles and powers of its state institutions to make them more competent. President Xi Jinping’s top economic adviser, Liu He, said that such meliorate would be profound.

— CNBC contributed reporting to this article.

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